Biden Drops Out and CrowdStrike Plunges | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: FROM BLOOMBERG'S LONDON HEADQUARTERS IN SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." COMING UP IN THE NEXT HOUR, MARKETS ENTERING UNCHARTED TERRITORY AS PRESIDENT BIDEN DROPS OUT AND PASSES THE BATON TO KAMALA HARRIS. WHO IN TECH WILL SUPPORT HER
AND WHAT IT MEANS FOR CRYPTO. ED: SHARES OF CROWDSTRIKE PLUMMET AGAIN AFTER ANALYSTS SOUND THE ALARM AFTER LAST WEEK'S WIDESPREAD OUTAGES. CAROLINE: TESLA COME ALPHABET, AND MORE PREPARED TO KICK OFF THE EARNINGS SEASON FOR THE MAGNIFICENT SEVEN -- TESLA, ALPHABET, AND MORE PREPARE TO KICK OFF THE EARNINGS SEASON FOR THE MAGNIFICENT SEVEN. MORE THAN A MONTH SINCE WE HAVE SEEN SUCH OUTPERFORMING BUT WE HAVE TO HONE IN ON THE MARKET IMPACT ON THE NEWS OVER THE WEEKEND. ED: LET'S GET THE OUTLOOK FOR THE 2024 PRESIDENTIAL ELECTION. IT TOOK A TURN THIS WEEKEND AS PRESIDENT BIDEN BOWED OUT OF THE RACE, ENDORSING KAMALA HARRIS -- ENDORSING VICE PRESIDENT KAMALA HARRIS. THE QUESTION IS, WHAT HAPPENS
NEXT? BECAUSE PRESIDENT BIDEN ENDORSING VICE PRESIDENT KAMALA HARRIS IS NOT DEFINITIVE NECESSARILY THOUGH IT WAS AN IMPORTANT MOMENT. >> IT CERTAINLY WAS, ESPECIALLY CONSIDERING IT WAS FOLLOWED BY THE ENDORSEMENTS OF MANY OTHER DEMOCRATIC LEADERS, BE AT FORMER PRESIDENT BILL CLINTON AND HIS WIFE HILLARY CLINTON, MEMBERS OF THE HOUSE AND SENATE, EVEN K GOVERNORS THAT WERE SEEN -- KEY GOVERNORS THAT WERE SEEN TO BE KEY. THAT IS IN ADDITION TO THE NUMBER THAT CAME OUT IN SUPPORT OF HARRIS IN THE IMMEDIATE AFTERMATH OF BIDENS ANNOUNCEMENT IN THE LAST 24 HOURS. THE OTHER THING IS SHE HAS A MONEY ADVANTAGE. NOT ONLY DOES SHE HAVE ACCESS TO THE HUNDREDS OF MILLIONS OF DOLLARS IN WHAT WAS THE BIDEN-HARRIS WARCHEST, SOMETHING OTHER CANDIDATES WOULD NOT HAVE THE SAME ACCESSIBILITY TO, WE ALSO SAW IN THE SEVEN HOURS OF THE AFTERMATH AFTER ANNOUNCING SHE INTENDS TO EARN AND WIN THE DEMOCRATIC NOMINATION, WE SAW $50 MILLION IN GRASSROOTS FUNDING RAISED. THE BEST DAY EVER FOR ACT BLUE, WHICH IS A KEY FUNDING AGGREGATOR. IT SEEMS THE PARTY IS VERY MUCH
IN LINE GETTING BEHIND HARRIS BUT NOTHING IS A DONE DEAL YET. WE STILL HAVE TO GET TO THE CONVENTION WHICH BEGINS FOUR WEEKS FROM TODAY IN CHICAGO ON AUGUST 19 WHERE THE DELEGATES WILL HAVE TO ANNOUNCE WHO THEY ARE GOING TO VOTE FOR. MANY WERE PLEDGED FOR JOE BIDEN WHO IS NOW NOT SEEKING REELECTION. CAROLINE: IMPORTANT SCREEN WE ARE LOOKING AT RIGHT NOW. REID HOFFMAN, KEY PERSON IN TECHNOLOGY, IS ONE OF THE KEY DEMOCRATIC DONORS. WILL THIS ULTIMATELY GALVANIZE
SOME OF THOSE WE SEE IN OUR COMMUNITY IN TECHNOLOGY, AND WHAT WILL THEY BE LOOKING FOR IN ANY WAY TO CHANGE THE DIRECTION OF POLICY? OR IS IT MORE OF THE SAME WHEN IT COMES TO BIDEN? KAILEY: CERTAINLY REID HOFFMAN WAS ONE OF THE FIRST TO COME OUT AND ENDORSED KAMALA HARRIS -- ENDORSE KAMALA HARRIS. GEORGE SOROS LATER DID. THEY WANT A PROCESS TO PLAY OUT FOR HARRIS TO EARN THE NOMINATION OR GIVE SOMEONE ELSE A CHANCE TO WHAT COULD THEORETICALLY BE A CONTESTED ELECTION. IN TERMS OF POLICY, THAT IS WHAT KAMALA HARRIS IS GOING TO HAVE TO DEFINE FOR HERSELF. WE WILL HEAR FROM HER FOR THE FIRST TIME TO THE CAMERAS AT 11:30 A.M. EASTERN TIME WHERE SHE WILL BE SPEAKING AT AN NCAA SPORTS DAY EVENT AT THE WHITE HOUSE. SO THAT IS A HALF HOUR FROM NOW.
IT WILL BE ABOUT THE WAYS IN WHICH SHE DIFFERENTIATES HERSELF FROM JOE BIDEN, EXPRESSING THAT NOT IN ALL AREAS IT WILL BE CONTINUITY. ESSENTIALLY, A KAMALA HARRIS PRESIDENCY WOULD LOOK VERY MUCH LIKE A JOE BIDEN PRESIDENCY. EVERYTHING THEY ARE FAULTING JOE BIDEN FOUR, KAMALA HARRIS WAS NOT ONLY THERE FOR IT BUT ENABLED PRESIDENT BIDEN TO TAKE THAT ACTION. IT IS A QUESTION OF HOW SHE WILL DIFFERENTIATE HERSELF FROM THE MAN SHE SERVED AS VICE PRESIDENT FOR THE LAST THREE AND A HALF YEARS. WHEN IT COMES TO TECHNOLOGY, IS
NOT JUST DEMOCRATS THAT NEED TO BE WATCHED. J.D. VANCE HAS BEEN HIGHLY SKEPTICAL OF BIG TECH. IN PARTICULAR HE HAS BEEN SUPPORTIVE OF COMPETITION AND ANTITRUST EFFORTS AFTER THE BIDEN ADMINISTRATION INCLUDING THE PRAISE HE HAD FOR THE FTC CHAIR, AND THERE MAY BE SOME ALIGNMENT WITH THE DEMOCRATS IN THOSE AREAS. ED:
BLOOMBERG'S KAILEY LEINZ, THANK YOU. LET'S GET REACTING FROM SILICON VALLEY AND THE DEMOCRATIC PARTY. STEVE WESLEY IS THE CEO OF THE WESLEY GROUP BUT ALSO A CALIFORNIA STATE CONTROLLER, AND HE COCHAIRED BARACK OBAMA'S CAMPAIGN IN THE STATE OF CALIFORNIA AND HAS BACKED BIDEN AND HAS BEEN A DELEGATE AT EIGHT DEMOCRATIC CONVENTIONS. HE JOINS US NOW FROM CALIFORNIA. STEVE, GOOD MORNING TO YOU. >> MORNING. ED: YOUR REACTION OF PRESIDENT
BIDEN ENDORSING KAMALA HARRIS AS NOMINEE? >> FIRST YOU HAVE TO GIVE JOE BIDEN CREDIT. IT IS AN EXTRAORDINARY ACT OF SELFLESSNESS FOR HIM TO STEP DOWN HAVING WON THE NOMINATION AND DOING WHAT HE THINKS IS RIGHT FOR THE COUNTRY TO BASICALLY SAY I WILL STEP DOWN, IT IS TIME TO BRING IN A NEW GENERATION, AND TURN THINGS OVER. HE HAS ENDORSED KAMALA HARRIS, BUT THERE WILL STILL BE A PROCESS. WHAT WE WILL SEE NOW I THINK IS EXCITING. EVERYONE IN THE WORLD IS WATCHING WHAT WILL HAPPEN NEXT.
THERE WILL BE SOME NEW BLOOD IN THE DEMOCRATIC PARTY. IS IT GOING TO BE KAMALA HARRIS OR IS IT GOING TO BE SOMEONE ELSE? I THINK THERE WILL BE AT LEAST ONE, MAYBE TWO OTHER PEOPLE THAT WILL COME IN THE RACE. I THINK IT WILL ADD A LOT OF EXCITEMENT TO THE RACE. EVERYBODY IS GOING TO BE TUNING INTO THE CONVENTION. IT IS JUST WHAT SHE WANTS. ED: YOU ARE IN A LARGE GROUP OF
SILICON VALLEY OR TECHNOLOGIST DEM DONORS AND BACKERS WHO ARE DOING THE MATH AND TRYING TO CALCULATE WHO CAN WIN AGAINST TRUMP-VANCE. DO YOU THINK KAMALA HARRIS CAN WIN? STEVE: ABSOLUTELY. SHE IS A KNOWN ENTITY. SHE HAS HIGH VOTER ID. SHE IS AN ARTICULAR PRESENTER, A FORMER PROSECUTOR. SHE WILL DO WELL IN A DEBATE AND IS ALL OVER HIGH-ENERGY. BUT THERE ARE OTHER CANDIDATES
LIKE THAT. THE FIRST IS GRETCHEN WHITMER OF MICHIGAN. WHO KNOWS, BUT I AM GUESSING THERE WILL BE AT LEAST ONE OTHER CANDIDATE IN THE RACE. I THINK IT IS JUST WHAT THE DEMOCRATIC PARTY NEEDS, TO INJECT SOME NEW BLOOD TO RUN AGAINST A 78-YEAR-OLD CANDIDATE WHO SEEMS TO BE FUZZY ON A ONE OF THE ISSUES.
I THINK IT IS AN OPPORTUNITY FOR THE DEMOCRATS. CAROLINE: STEVE, WHAT ABOUT THE OPPORTUNITY TO FINANCE THE DEMOCRATS RIGHT NOW? HOW MUCH DO YOU THINK THIS WILL INSPIRE MORE OF SILICON VALLEY TO START SPEAKING OUT ABOUT WHO THEY ENDORSE AND WITH THEIR MONEY? STEVE: FIRST THERE WILL BE ENORMOUS AMOUNTS OF MONEY THAT COME IN ON BOTH SIDES. IN TERMS OF SILICON VALLEY, I CAN TELL YOU RIGHT NOW SILICON VALLEY HAS BEEN FOR DEMOCRATS OVER THE PAST THREE OR FOUR ELECTIONS AND I THINK IT WILL BE THE SAME THIS TIME. THE CURRENT ADMINISTRATION'S SUPPORT OF THE CHIPS ACT, THE INFLATION REDUCTION ACT, THE LARGEST GREEN ENERGY STIMULUS IN THE HISTORY OF THE PLANET. NOBODY OTHER THAN BIDEN COULD HAVE GOTTEN THIS DONE. UNEMPLOYMENT AT HISTORIC LOWS.
ONE THING THAT SILICON VALLEY LOOKS FOR INSTABILITY. DEMOCRATS PROVIDED THAT. I THINK ANYBODY CAN SAY OTHERWISE WE WILL SEE HOW THAT FALLS BUT I EXPECT SILICON VALLEY TO GO FOR THE DEMOCRAT, WHOEVER IT IS. CAROLINE: AMEN YOU KNOW -- A MAN YOU KNOW WELL HAVING BEEN ON THE BOARD OF TESLA AND SUPPORTED ELON MUSK IN THE PAST, HE IS GIVING $45 MILLION A MONTH TO A PAC THAT SUPPORTS TRUMP. REID HOFFMAN WAS THE BIGGEST DONOR PREVIOUSLY WITH A $25 MILLION CHECK. HOW DO YOU SEE THOSE SORTS OF NUMBERS ADDING UP? WILL THERE BE SOMEONE THAT CAN MATCH THE HUGE GIFT WE SEE FROM THE WORLD'S WEALTHIEST MAN? STEVE: ABSOLUTELY. LOOK MOTHER WILL BE HUGE
AMOUNTS OF MONEY THAT COME IN -- LOOK, THERE WILL BE HUGE AMOUNTS OF MONEY THAT COME IN ON BOTH SIDES. MANY OF THE WEALTHIEST PEOPLE IN THE WORLD ARE STRONG DEMOCRATS, AND I THINK YOU WILL SEE EQUAL MONEY MATCHED IF NOT MORE COMING IN ON THE DEMOCRAT SIDE. AND AGAIN, WHAT THE DEMOCRATS PROVIDED OVER THE LAST FOUR YEARS, HISTORICALLY HIGH STOCK MARKET RATES, HISTORICALLY LOW UNEMPLOYMENT, THIS IS A GOOD STORY TO CAMPAIGN ON.
IF YOU CAN WRAP ALL OF THAT TOGETHER WITH A STRONG, NEW CANDIDATE, WHETHER IT IS KAMALA HARRIS OR SOMEBODY ELSE, I THINK THAT IS A WINNING PACKAGE FOR THE DEMOCRATIC PARTY. ED: STEVE, A CRITICISM OF PRESIDENT BIDEN'S TERM IN OFFICE HAS BEEN HIS ATTITUDE TOWARD AND LACK OF ENGAGEMENT WITH ELON MUSK IN THE CONTEXT OF ELECTRIC VEHICLES AND SPACE AS WELL. DO YOU EXPECT KAMALA HARRIS OR WHOEVER THE DEMOCRATIC NOMINEE ENDS UP BEING TO CHANGE POLICY THERE? STEVE: NOT FOR A MOMENT.
I THINK THE BIDEN ADMINISTRATION HAS BEEN A CHAMPION FOR NOT ONLY GREEN ENERGY BUT TO STIMULATE THIS BOOM IN ELECTRIC VEHICLES. THE GREAT NEWS IS NOT ONLY OUR ELECTED VEHICLES BECOMING CHEAPER EVERY YEAR, THEY ARE CREATING HUGE BATTERY PLANTS, EV PLANS AROUND THE COUNTRY IN BLUE AND RED STATES. FOR THE FIRST TIME THIS YEAR, YOU WILL SEE EV'S IN PARITY WITH OTHER ENGINE VEHICLES. THE DEMOCRATIC NOMINEES WILL BE STRONGLY IN FAVOR OF THE GREEN POLICY. I THINK TRUMP MAY BE THE ODD GUY OUT TO BE HOLDING ON EMBRACING INTERNAL COMBUSTION ENGINE VEHICLES AT A TIME WHEN THEY ARE LESS POPULAR THAN THEY HAVE BEEN IN THE PAST. CAROLINE: STEVE, GREAT TO CATCH UP WITH
YOU. THANK YOU SO MUCH FOR YOUR TIME TODAY. MEANWHILE, COMING UP, WE WILL BE CHECKING IN ON CROWDSTRIKE. REMEMBER THE MASSIVE OUTAGE THAT CAUSE DISRUPTIONS TO BUSINESSES ACROSS THE GLOBE? SANJAY WILL BE JOINING US ON THAT NEXT. WE WILL CHECK IN ON THE CROWDSTRIKE SHARES BECAUSE CURRENTLY TRADING ONCE AGAIN OFF BY 10.5%, WORST DAY SINCE
ALL OF FRIDAY WHEN IT WAS OFF BY MORE THAN 11%. CURRENTLY TRADING AT THE LOWEST OF THE YEAR. THIS IS "BLOOMBERG TECHNOLOGY." ED: LET'S TALK MORE ABOUT CROWDSTRIKE.
IN THE SESSION, STOCK DOWN ALMOST 11%. THEY FELL 11% FRIDAY FOLLOWING ITS BOTCHED PATCH OR SOFTWARE UPDATE THAT CAUSED AN OUTAGE IMPACTING 8.5 MILLION MICROSOFT WINDOWS PCS AROUND THE WORLD, A NUMBER OF FIRMS DOWNGRADING THE STOCK OFF OF THE OUTAGE. REAL QUICK ON THE TWO DATABASES, IT IS A STOCK FACING -- TWO DAY BASIS, IT IS A STOCK FACING PROBLEMS. HOW SEVERE IS THIS? THE INDUSTRY IS TALKING ABOUT THIS. LET'S BRING IN SANJAY MIRCHANDANI.
THE STOCK CONTINUES TO HAVE REACTION. YOUR INDUSTRY CONTINUES TO HAVE REACTION AS WELL. WHAT IS THE LASTING EFFECT OF THE OUTAGE? SANJAY: WE LIVE IN AN EXTREMELY INTERCONNECTED WORLD RIGHT NOW. CLOUD DEVICES, SERVERS, AND CROWDSTRIKE IS A POPULAR TECHNOLOGY. WE USE IT AS WELL. AND SO WHEN SOMETHING LIKE THIS HAPPENS, THERE IS A LONGTAIL END AND IT HAS TO BE CLEANED UP. THE LESSONS HERE, AND THE FIX
FOR THE MOST PART WAS FAIRLY MANUAL. IT TOOK TIME. IT TOOK TIME. WE ARE GETTING OUT OF IT. WE ARE GETTING OUT OF THIS PROCESS. CAROLINE: DID YOU HAVE ANY CAUSE FOR CONCERN AHEAD OF THIS ABOUT PRIOR UPDATES THAT CROWDSTRIKE HAD RUN, THAT THERE MIGHT HAVE BEEN ANYTHING THAT WOULD SIGNAL SUCH AN EVENT COULD OCCUR? SANJAY: THEY ARE A SECURITY COMPANY.
YOU TEND TO TRUST SECURITY COMPANIES. THERE WAS NOTHING BEFORE THIS SPECIFICALLY BY CROWDSTRIKE THAT WOULD BE OF CONCERN. WHAT IS ALWAYS OF CONCERN YOU HAVE A LARGE NUMBER OF PATCHES, A LARGE NUMBER OF CONNECTED SYSTEMS AND DEPENDENCIES IS YOUR ABILITY TO REALLY STAGE A PATCH, TEST IT IN YOUR PARTICULAR ENVIRONMENT BECAUSE NO TWO ENVIRONMENTS ARE THE SAME, AND ONCE YOU KNOW YOU HAVE IT WORKING WHERE YOU NEED IT TO PUSH IT OUT. WITH SECURITY, THE WINDOW YOU HAVE BETWEEN A CRITICAL PATCH AND YOUR ABILITY TO DEPLOY IT IS VERY, VERY SMALL SO YOU TEND TO TRUST MORE AND PUSH FASTER. CAROLINE: WE HAVE HEARD FROM ACROSS INDUSTRIES, PARTICULARLY FROM THE AIRLINE INDUSTRY, THE DELTA CEO COMING OUT AND APOLOGIZING, AND STILL TODAY THERE ARE ISSUES AFFECTING THEIR ABILITY TO SERVE CUSTOMERS.
SANJAY, WHEN IT COMES TO BUSINESS CONTINUITY, WHAT CAN A COMPANY LIKE DELTA HAVE DONE TO PREVENT A FALLOUT THAT WE NOW HAVE SEEN 300,000 PLUS CANCELLATIONS ON FRIDAY? SANJAY: IT IS ABOUT RESILIENCE. PEOPLE USE THE WORD RESILIENCE IN A BROADWAY BUT FOR US IT IS ABOUT BUSINESS'S ABILITY TO GET BACK TO LIFE REGARDLESS OF THE CATASTROPHIC EVENT. IT COULD. HAVE BEENHUMAN ERROR IN THIS CASE -- IT COULD HAVE BEEN HUMAN ERROR, IN THIS CASE HUMAN ERROR, MALICIOUS, A NATURAL DISASTER. WHAT WE DO IS WE HELP CUSTOMERS BUILD A CAPABILITY, PLATFORM, MUSCLE THROUGH REPEATED TESTING AND SCALE SO THAT IN THE EVENT THAT SOMETHING GOES SIDEWAYS, YOU HAVE TRIED AND TESTED THE ABILITY FOR YOUR BUSINESS TO COME BACK TO LIFE. AND I THINK WITH EVERYTHING WE'VE GOT GOING ON AS ENTERPRISES, NOT ENOUGH TIME IS SPENT ON PRACTICAL CAPABILITIES OF RESILIENCE AND MORE SORT OF YOU TEND TO LEAN ON THE ACADEMIC THOUGHT PROCESS.
YES, WE HAVE THIS LIST. WE HAVE DONE THIS. WE HAVE WRITTEN THIS UP. BUT HOW MUCH OF YOUR ENTERPRISE HAVE YOU ACTUALLY TESTED WITH A DEEP DEGREE OF CONFIDENCE? THAT IS WHAT WE ENABLE OUR CUSTOMERS TO DO. ED: SANJAY, I WROTE IN MY TECH DAILY COLUMN THIS MORNING ABOUT CONCENTRATION RATES. SO MANY COMPANIES RELIED ON
CROWDSTRIKE. BUT ALSO 8.5 MILLION COMPUTERS, IT WAS THE MOST CRITICAL OF COMPUTERS THAT WERE IMPACTED. HOW COULD THAT HAVE BEEN MITIGATED OR PREVENTED? SANJAY: I THINK IT WAS A WARNING SHOT. WE HAVE ALL BEEN SITTING BACK AND SAYING, WHAT DOES MY FLEET LOOK LIKE? WHAT DO MY SERVERS LOOK LIKE? WHAT ARE MY USERS WORKING WITH? IT ALMOST MAKES YOU TAKE A STEP BACK AND SAY WE NEED TO HAVE A VERY CALCULATED MIX SO YOU ARE NOT OVER RELIANT OR OVER DEPENDENT ON ANY ONE ENVIRONMENT. BECAUSE THAT IS PART OF RESILIENCE.
THAT IS EXACTLY PART OF RESILIENCE. I THINK FOR EVERYONE THIS WEEK AND BEEN A BIT OF A WAKE-UP CALL TO SAY WHERE AM I OVER DEPENDENT? DO I HAVE ENOUGH CONTROLS? I COULD BE MORE RESILIENT. FOR ALL OF THE NEGATIVE OUTCOME OF SOMETHING LIKE THIS, THE POSITIVE TAKEAWAY IF YOU CAN IS LET'S GO BACK AND MAKE SURE WE ARE VERY CALCULATED ABOUT HOW WE BUILD OUT THE ENTERPRISE LANDSCAPE, THE I.T. LANDSCAPE. CAROLINE: ANALYST GETTING CANTILEVERED ON WHAT THE PRICE TARGETS ARE. SANJAY GETTING MORE CALCULATED AS WELL. WE APPRECIATE YOUR PERSPECTIVE ON CROWDSTRIKE.
COMING UP, WE WILL BE JOINED BY MICHELLE FOR HER READ ON THE IMPACT OF CHINA-U.S. RELATIONS IN THE TECH SECTOR, AND I AM ALSO LOOKING AS WE GO TO BREAK ON A SHARE THAT YOU NEED TO KEEP AND I ON DOWN 6%. VERIZON -- AN EYE ON DOWN 6%. VERIZON IS DOWN.
A BIT OF A MISS FROM WHAT THE MARKET WANTED TO SEE. SOME ACTUAL GAINS IN WIRELESS PHONE CUSTOMERS THOUGH. THIS IS "BLOOMBERG TECHNOLOGY."
ED: TAKE SOME PROFIT ON THE AI BOOM. THAT IS THE MESSAGE FROM MORGAN STANLEY. THEY CUT KEY AI CHIP NAMES LIKE TSMC FROM THEIR FOCUS LIST. A ROUGH SESSION FOR TECH IN ASIA TRADING OVERNIGHT. TOP OF MIND FOR THE FIRM, TOUGHER CURBS ON U.S.
TAX SALES TO CHINA AND AN AI MARKET THAT MAY HAVE GOTTEN TOO HOT. IT IS THE FIRST TIME IT DOWNGRADED THE SECTOR SINCE ITS OVERWEIGHT CALL IN OCTOBER OF 2022. LET'S GET THE PERSPECTIVE OF MICHELLE GIUDA. AN ORGANIZATION DEDICATED TO ACCELERATING THE INNOVATION AND ADOPTION OF TRUSTED TECHNOLOGY. IT IS AN ONGOING STORY, BUT IT IS NOT GOING AWAY. THE UNITED STATES WITH ITS
CURRENT ADMINISTRATION LIMITING CHINA'S ACCESS TO KEY SEMICONDUCTOR ENERGY IN THE CONTEXT OF CHINA, HOW LONG WILL THAT SUSTAINED POLICY BE? MICHELLE: THANKS, ED. THIS IS FIRST A TRUMP ADMINISTRATION POLICY TOWARD CHINA TO A BIDEN ADMINISTRATION POLICY TOWARD CHINA. IT IS NOW CLEAR THIS IS THE AMERICAN POLICY TOWARD CHINA.
THERE IS A LOT OF BIPARTISAN CONSENSUS FROM THE U.S. CONGRESS AS WELL AND NOT TO MENTION MANY OF OUR PARTNERS AND ALLIES ACROSS THE WORLD. THERE HAS BEEN TREMENDOUS VOLATILITY AND UNCERTAINTY WITH REGARDS TO THE POLITICAL ELECTION, EVEN OVER THE PAST 10 DAYS, BUT IF YOU ARE CEO OF A TECH COMPANY, THE ONE THING YOU CAN BE CERTAIN OF THE ONE THING THAT WILL BE STABLE IS GOING TO BE AMERICAN POLICY TOWARDS CHINA WHEN IT COMES TO OUR OWN TECH SECURITY AND ECONOMIC COMPETITIVENESS. CAROLINE: IS THAT THE RIGHT POLICY,
MICHELLE? MICHELLE: WELL, LET'S START WITH THE ULTIMATE END GOAL. AND THE ULTIMATE END GOAL IS THE U.S. AND PARTNERS AND ALLIES ACROSS THE WORLD HAVE TO HAVE COMPETITIVENESS AND SUPERIORITY WHEN IT COMES TO TECHNOLOGY BECAUSE WHOEVER LEADS IN TECHNOLOGY IS GOING TO DICTATE THE VALUES AND THE STANDARDS AND THE REGULATIONS THAT OVERSEE OUR MILITARIES, ECONOMIES, FINANCIAL SYSTEM, CULTURE, AND INFORMATION SPACE. THE IMPERATIVES TO LEAD IN TECHNOLOGY, THAT MEANS WE HAVE TO INNOVATE FASTER, SMARTER, BETTER. WE HAVE TO MAKE SURE OUR
COMPANIES ARE NOT CONTRIBUTING TO CHINA'S ABILITY TO BEAT US IN TECHNOLOGIES LIKE ARTIFICIAL INTELLIGENCE. ED: MICHELLE, NVIDIA FOR EXAMPLE IS OFF SESSION HIGHS BUT UP SIGNIFICANTLY THIS MORNING. THERE WERE REPORTS IT IS PREPARING A SPECIFIC PRODUCT THAT WOULD BE WITHIN THE BOUNDS OF CURRENT RESTRICTIONS. THAT SEEMS SUCH AN INTERESTING POLICY. HOW SEVERE DO YOU EXPECT THE REACTION FROM THE ADMINISTRATION ON THE POLICY SIDE TO BE OF CORPORATE ELECT TO DO THAT, JUST ADJUST THEIR PRODUCT SO THEY ARE IN CODIFIED RULES? MICHELLE: THIS IS THE NEW REALITY WE ARE IN 2024 THROUGH 2034. COMPANIES HAVE TO WORK TOGETHER TO ENSURE COMPANIES ARE ABLE TO BE COMPETITIVE AND ENSURE THEIR BUSINESS SUCCESS AND AT THE SAME TIME THEY ARE CONTRIBUTE INTO AND NOT WORKING AGAINST U.S. AND ALLIED NATIONAL SECURITY.
THAT IS WHAT TECH DIPLOMACY IS. THAT IS WHAT THE INSTITUTE IS FOCUSED ON. SO WE ARE SEEING THAT PUSH AND PULL BETWEEN COMPANIES AND GOVERNMENTS, BUT THE LONG-TERM TRAJECTORY OF THIS IS THAT COMPANIES NEED TO BE ACTING IN THE NATIONAL SECURITY OF THE UNITED STATES. THERE IS A WAY TO BE COMPETITIVE. THERE IS A WAY TO MAKE MONEY.
THERE IS A WAY TO MAKE SURE WE ARE ADVANCING NATIONAL SECURITY. THIS IS AN AND SCENARIO, NOT A ONE OR THE OTHER. CAROLINE: YOU MENTIONED ALLIES. MUCH OF RECENT REPORTING HAS
BEEN FOCUSED ON HOW THE ADMINISTRATION WILL LEAN ON THE DUTCH, THE JAPANESE. HOW WILL THAT DIFFER BETWEEN A TRUMP VERSUS POTENTIAL HARRIS? MICHELLE: LOOK, IN THE PREVIOUS ADMINISTRATION, ONE OF THE THINGS THE FOUNDERS OF THE INSTITUTE FOCUSED ON WAS BUILDING A HISTORIC NETWORK TO SECURE 5G INCLUDING 60 COUNTRIES AND 200 TELECOMMUNICATIONS COMPANIES THAT WORKED TOGETHER ACROSS ALL OF OUR COUNTRIES IN ORDER TO SECURE 5G AND MAKE SURE WE ARE ONLY USING TRUSTED VENDORS. THAT ULTIMATELY STOPPED HUAWEI IN ITS TRACKS FROM BEING THE GLOBAL DOMINANT 5G PROVIDER. THAT HAS BEEN CONTINUED WITH THIS ADMINISTRATION. WHATEVER THE NEXT ADMINISTRATION AND INTO THE NEXT 20 YEARS IS BEING.
FOR THE U.S. AND OUR ALLIES TO WORK TOGETHER, AND YOU TALKED ABOUT CHIPS, AND YOU ARE SEEING IN ONE OF THE SAME TRAJECTORIES FROM OUR PARTNERS AND ALLIES WITH CHIPS. FOCUS ON GOVERNMENT SUBSIDIES TO ADVANCED CHIP SELF-SUFFICIENCY THE WAY MANY OF OUR ALLIES ARE ON THE SAME PATH. CAROLINE: MICHELLE GIUDA, WE THANK YOU SO MUCH.
CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY." I’M CAROLINE HYDE IN LONDON. ED: AS SURE AS THE SUN RISES AND SETS, THERE ARE FINANCIAL MARKETS TO TALK ABOUT. CAROLINE: THE NASDAQ 100 COMING OFF THE HIGHS AT THE MOMENT, JUST OFF BY .7%, BEST MOVE SINCE JULY 10. WE’RE IN THE GREEN, AND THAT’S NOT WHERE WE WERE LAST WEEK, WORST WEEK THAT WE HAD ON THE NASDAQ SINCE APRIL. WE’RE SEEING CLOUDSTRIKE PULLING TO THE DOWNSIDE, ALMOST 13%, NOW TRADING EVEN MORE SIGNIFICANTLY THAN IT DID ON FRIDAY WHEN WE FIRST LEARNED OF THE OUTAGE THAT WAS SPARKED BY AN UPGRADE THAT WENT HORRIBLY WRONG FOR CLOUDSTRIKE. KEEP AN EYE ON THAT COMPANY.
CRYPTO NOW ACTUALLY TRYING TO DIGEST ULTIMATELY WHAT A HARRIS VERSUS TRUMP, AND INDEED IF IT DOES REMAIN KAMALA HARRIS LEADING AND VYING FOR THE NOMINATION FOR THE DEMOCRATS, WHAT WOULD THAT MEAN FOR CRYPTO? THE CRYPTO MARKET IS THINKING ITS BEST CHANCE IS STILL FOR TRUMP. WE’RE UP 3.5%. NOTABLY WE’RE JUST ON THE DOWNSIDE TODAY, ED. ED: LET’S LOOK AT WHO IN THE DIGITAL ASSET WORLD MIGHT BENEFIT THE MOST FROM A POTENTIAL SECOND DONALD TRUMP TERM IN OFFICE. AND WHO MIGHT LOSE THE MOST.
THERE ARE ACTUALLY TWO LAYERS TO IT, RIGHT? IN THE MOMENT, THE MARKET SAYING, WELL, WE THINK TRUMP IS THE MORE LIKELY OUTCOME, BUT AT THE SAME TIME, HE’S THE MORE PRO-CRYPTO CANDIDATE, AND TRYING TO MAKE SENSE OF THAT ON AN ASSET CLASS THAT TRADES THIS/7 HAS BEEN QUITE A LOT OF FUN FOR YOU. >> JUST THINK ABOUT THE RISE BITCOIN HAS SEEN AFTER IT WAS IN AN EARLY SUMMER SLUMP. YOU AND I, ABOUT A MONTH OR TWO AGO, WERE TALKING ABOUT HOW DIFFICULT IT WAS FOR THIS CRYPTOCURRENCY TO GET OUT OF THAT SLUMP. NOW WE’RE IN A POSITION WHERE, YES, ON THE HOPES OF A MORE FRIENDLY PRESIDENT HERE TO THE CRYPTO INDUSTRY, YOU HAVE SEEN BITCOIN RISE TO THE TUNE OF 10% SINCE EARLY KIND OF INDICATIONS HERE OF BIDEN LOSING SOME STEAM, WHEN YOU SAW HIM ADDRESS THE PUBLIC IN DIFFERENT WAYS, AND CERTAINLY EVEN MORE SO WHEN HE STEPPED DOWN FROM THE NOMINATION YESTERDAY.
YOU ALSO HAD, FOR EXAMPLE, BITCOIN MINERS SURGED MORE THAN BITCOIN ITSELF. A LOT OF PEOPLE, THIS IS INTERESTING, REMEMBER, IT’S NOT JUST THE PRESIDENTIAL RHETORIC WE’RE TALKING ABOUT HERE. IT’S ALSO THE IDEA YOU MAY EXPECT AN APPROVAL OF A FILING THIS WEEK, AND THEY TRADE AS WELL. SO, YES, UNDER THE BIDEN ADMINISTRATION, THEY’VE COME DOWN VERY HARD ON THE CRYPTO COMMUNITY? ABSOLUTELY. HAS IT LEFT AN OVERHANG ON CRYPTO STOCKS, PARTICULARLY EXCHANGES? ALSO YES. HAS THE BIDEN WHITE HOUSE OVERTURNED BILLS, BIPARTISAN BILLS PARTICULARLY, THAT WOULD HAVE CHANGED THE WAY CRYPTO IS ACCOUNTED FOR? ALSO YES.
BUT THEN AGAIN, YOU HAVE SEEN ALSO PIVOTAL MOMENTS IN THE BITCOIN INDUSTRY, NEW RECORD HIGHS UNDER THE BIDEN ADMINISTRATION AS WELL. SO A LITTLE UNCLEAR HERE AS TO HOW MUCH MORE FOR CRYPTO TRUMP WOULD BE THAN THE BIDEN ADMINISTRATION. CAROLINE: OF COURSE, WHETHER OR NOT IT WILL BE HARRIS, WHO HARRIS WILL BE ACCOMPANIED BY. WE ARE AWAITING HER FIRST LIVE REMARKS SINCE THE BATON WAS HANDED FROM PRESIDENT BIDEN TO, SAY HE DOES ENDORSE V.P. HARRIS TO TAKE ON THE DEMOCRATIC PARTY IN THE NEXT ELECTION. WE’LL BE WAITING TO SEE WHAT
SHE SAYS, REMARKS AT THE NCAA CELEBRATION EVENT. BUT MORE BROADLY, HAVE WE EVER HEARD V.P. HARRIS SPEAK PARTICULARLY ABOUT CRYPTO? HAVE WE EVER TRIED TO GARNER ULTIMATELY -- YOU’VE SPOKEN TO OTHERS. HE REALLY WAS PUSHING FOR THIS CHANGE OF THE GUARD. >> HE WAS PUSHING FOR THE CHANGE OF THE GUARD, BUT JUST AS INTERESTING, CAROLINE, IS THIS IDEA THAT HE WANTS TO SEE A RACE. HE IS ONE OF THE BILLIONAIRES
THAT DID SPEAK TO BLOOMBERG ABOUT THE IDEA THAT SHE’S GOING TO HAVE TO WIN THAT TICKET GOING INTO THAT DEMOCRATIC HASH CONVENTION IN MID AUGUST. HE DID NOT FLAT OUT SAYING SHE SHOULD HAVE IT ON DAY ONE. SO THERE IS MORE SUPPORT FOR KAMALA HARRIS. AND REMEMBER, IT’S NOT THAT THE
TRUMP ADMINISTRATION IS ALL IN ON CRYPTO AS WELL. REMEMBER, THE SECURITIES AND EXCHANGE THE CHAIR HAS EXAMINED THE JOURNAL OF THE LAST DAY’S PROCEEDINGS UNDER THE TRUMP ADMINISTRATION, CRYPTO DID FACE SOME HURDLES IN THAT TIME AS WELL, IF YOU REMEMBER. THE OTHER THING UNDER A TRUMP ADMINISTRATION THAT WOULD COME UNDER VERY SIGNIFICANT CONCERN IS AN IDEA OF A CENTRAL BANK DIGITAL CURRENCY.
THIS IDEA THE GOVERNMENT ITSELF COULD SURVEIL PAYMENTS IN A BROADER WAY. IT’S A NUANCED VIEW HERE. AND THERE ARE STILL A LOT OF HOLDOUTS IN THE CRYPTO COMMUNITY THAT DON’T SAY THE REPUBLICAN PARTY IS THE ONLY ONE FOR CRYPTO, THOUGH IT IS LEANING THAT WAY OF LATE. CAROLINE: ALWAYS 24/7, WE SO APPRECIATE IT. LET’S SPEAK TO SOMEONE WHO’S DEEP WITHIN THE CRYPTO ECOSYSTEM ABOUT POLITICAL CHANGE, THE E.T.F. WE’RE ALL EYEING TO GO LIVE THIS WEEK. YOUR READ ON THIS ULTIMATELY, WHETHER THERE WILL BE A SUDDEN CLEARER PATH FOR REGULATION WHEN IT COMES TO CRYPTO, IF WE DID HAVE TRUMP, OR INDEED, IF WE DID HAVE HARRIS.
>> WE’RE GOING TO FIND OUT REALLY SOON, AREN’T WE? HARRIS IS A LITTLE BIT UNKNOWN SO FAR IN TERMS OF WHAT HER INDIVIDUAL VIEWS ARE, BUT FOR THE MOST PART, I THINK SHE’S PROBABLY GOING TO ECHO WHAT BIDEN HAS DONE. WHILE PEOPLE ARE FOCUSED A LOT ON WHETHER OR NOT THIS IS A PARTY ISSUE, I THINK WHAT IT’S REALLY ABOUT IS WHO ARE THE HEADS OF THE VARIOUS AGENCIES. THE REGULATORS HAVE TREMENDOUS POWER HERE, AND I’M TALKING ABOUT NOT JUST THE S.E.C., BUT ALSO THE FTIC AND THE O.C.C. SO TO A LESSER EXTENT, THE I.R.S. AND THE F.T.C. OBVIOUSLY SECRETARY OF TREASURY
IS HUGE. SO WHOEVER IS IN THOSE SEATS RIGHTLY DICTATES WHAT HAPPENS. AND LET’S BE REALISTIC HERE. CRYPTO, WHILE A VERY IMPORTANT ISSUE, IS NOT THE BIGGEST ISSUE FOR MOST POLITICAL MINDS. SO, YOU KNOW, THEY’RE GOING TO
BE PICKING THOSE SEATS BASED ON OTHER FACTORS, AND YET WHO THEY PUT INTO THOSE POSITIONS CAN TURN ON OR OFF CRYPTO LIKE A LIGHT SWITCH. ED: ONE OF THE VOICES QUOTED IN THE BLOOMBERG NEWS BITCOIN WRAP TALKS ABOUT HOW IF TRUMP IS ELECTED TO AN OFFICE, THAT’S AN ASSET CLASS, CRYPTO BECOMES MORE INVESTABLE. IS THAT BECAUSE OF WHAT YOU JUST SAID ABOUT REGULATORS? IF TRUMP COMES TO OFFICE WITH A CLEAR PRO-CRYPTO STANCE, THE REST OF THE MARKET KIND OF FOLLOWS SUIT. >> WELL, TRUMP HAS BEEN VERY CLEAR, CERTAINLY IN THE LAST SIX MONTHS, AND YOU CAN GO BACK TO 2019 AND HE HAD A DIFFERENT VIEW, BUT HE’S CONSISTENT NOW, AND I THINK WHAT’S HAPPENED IS HE’S ACTUALLY LEARNED THE MARKED HAS EVOLVED BY FOUR YEARS. WE HAVE TREMENDOUS INFRASTRUCTURE WE DID NOT HAVE FOUR YEARS AGO. SO I THINK HE IS READY TO MAKE
CRYPTO AN INVESTABLE ASSET. FRANKLY, REGARDLESS WHICH POLITICAL SIDE YOU’RE ON, DIGITAL ASSETS, CRYPTO, ARE ABOUT MONEY FOR THE PEOPLE AND ABOUT FREEDOM OF CHOICE. THESE ARE TWO VIRTUES BOTH PARTIES ESPOUSE TO BE IN FAVOR OF. HOWEVER, SOME POLITICAL LEADERS TEND TO LEAN MORE TOWARDS GIVE THE POWER TO THE BANKS, RIGHT? I THINK THERE’S A REAL CHALLENGE. THERE’S A FIGHT GOING ON BEHIND THE SCENES FOR POWER KIND OF IN THE FINANCIAL INSTITUTION SYSTEM, AND ARE YOU GOING TO GIVE THAT TO THE BACKES OR OPEN IT UP WITH FREEDOM AND LET PEOPLE DECIDE? TRUMP HAS DEFINITELY SAID THE LATTER. BIDEN PUT IN PEOPLE THAT WERE MORE IN FAVOR OF KIND OF THE EXISTING BANKING SYSTEM, AND THAT’S THE QUESTION THAT WE HAVE IN FRONT OF US, WHAT’S GOING TO HAPPEN NEXT. ED: I GUESS THE JOY OF CRYPTO
MARKETS IS IT TRADES 24/7, AND JUST LIKE EVERYONE ELSE, I WAS LOOKING AT BITCOIN OVER THE HEADLINE. DO YOU READ MUCH INTO THE MINUTE-BY-MINUTE MOVE WHEN A NEWS EVENT LIKE THIS PAST WEEKEND HAPPENS? DOES THE MARKET TELL YOU ANYTHING ABOUT POPULAR SENTIMENT? >> IT DOES. YOU ALWAYS HAVE TO TAKE IT WITH A GRAIN OF SALT. IT’S REALLY HARD TO READ THE TEA LEAVES. I’M NOT A TRADER. I THINK PEOPLE PUT TOO MUCH
EMPHASIS ON SMALL-TERM SHORT MOVEMENTS. BUT NO, WE DO SEE POPS. WHEN PEOPLE ARE SEEING A MORE POSITIVE OUTLOOK, AND I THINK RIGHT NOW, THE TRUMP ADMINISTRATION, IF YOU WERE TO COME IN, CLEARLY SIGNALS A MORE FAVORABLE APPROACH TO CRYPTO, AND WE’LL SEE WHAT HAPPENS IF IT’S ANYTHING ELSE.
BUT BIDEN AND THEN HARRIS, KIND OF BY PROXIMITY, WOULD ALSO LIKELY PUT IN THE SAME TYPES OF CANDIDATES AND PROBABLY BE PRETTY NEGATIVE FOR CRYPTO. CAROLINE: MIKE, THIS WEEKEND, WE’RE ANTICIPATING TRUMP TO SPEAK AT A BIG BITCOIN CONFERENCE IN NASHVILLE, LIKELY TO BE SEEING SOME MORE MONEY COMING FROM THE CRYPTO ECOSYSTEM INTO HIS OWN COFFERS FOR FUNDRAISING. WHAT ABOUT THE PEOPLE YOU SPEAK TO ABOUT WHETHER OR NOT THEY’RE GOING TO MAKE MONEY OR DONATIONS TO A HARRIS-LED DEMOCRATIC PARTY? >> I’VE BEEN A SINGLE ISSUE VOTER, I THINK A LOT OF CRYPTO PEOPLE ARE. WHERE WE STAND IN THE ECOSYSTEM, I THINK OUR CLIENTS EXPECT US TO BE THIS WAY. WE’RE REALLY LOOKING OUT FOR HOW DO WE MAKE DIGITAL ASSETS BETTER? WE DO THINK IT IS IMPORTANT FOR THE UNITED STATES TO BE COMPETITIVE IN FINANCIAL MARKETS. THAT WAY WE HAVE SOLID DIGITAL ASSETS. IN GENERAL, THERE’S STILL A LOT
OF MOMENTUM BEHIND TRUMP. PRIOR TO TRUMP COMING IN AND DECLARING THAT, HEY, THIS IS AN IMPORTANT ISSUE FOR AMERICA’S FUTURE, THE CURRENT ADMINISTRATION DIDN’T SEEM TO BE ANY INKLING THAT WAS TRUE AT ALL AND HAS BEEN PUNITIVE. ON THE GOOD NEWS SIDE, I DON’T THINK THIS IS REPUBLICAN VS. DEMOCRATS. 71 DEMOCRATS VOTED FOR THE BILL. THIS IS A BIPARTISAN APPROACH. WHILE THERE’S A FEW PEOPLE IN
EACH PARTY, MAYBE A LITTLE BIT MORE IN THE DEMOCRATIC PARTY, BUT A FEW THAT DON’T LIKE CRYPTO, IN GENERAL THIS IS GOOD FOR AMERICA, IT’S GOOD FOR PEOPLE, IT’S GOOD FOR FREEDOM. EVERY POLITICIAN SHOULD BE STANDING UP RIGHT NOW FOR BITCOIN AND DIGITAL ASSETS. ED: YOU HAVE TO TALK ABOUT J.D. VANCE IF YOU’RE GOING TO TALK ABOUT REGULATION PARTY VERSUS PARTY. DO YOU HAVE A CLEAR SENSE OF HIS ATTITUDE TOWARD THE CRYPTOCURRENCY MARKETS? >> WELL, GOOD NEWS THERE IS HIS PROXIMITY TO SILICON VALLEY, HIS PAST RELATIONSHIPS WITH FOUNDERS, PETER THEIL AND THE OTHERS, HE UNDERSTANDS TECHNOLOGY JUST A HECK OF A LOT BETTER THAN THE OLDER PEOPLE THAT HAVE BEEN RUNNING THE SHOW HERE IN AMERICA THE LAST FEW YEARS. I THINK IT’S REFRESHING TO HAVE SOMEBODY FROM THE YOUNGER GENERATION. I MEAN, REMEMBER, OF THE
MILLENNIAL MILLIONAIRES OUT THERE, 100% OF THEM OWN BITCOIN. IF YOU WANT TO TALK TO THE YOUNGER GENERATION, THEY OBVIOUSLY WANT TO HAVE A CONVERSATION ABOUT BITCOIN. AND I THINK J.T. VANCE HITS THAT A LOT BETTER THAN THE ELDER FOLKS DID. ED: ONE IDEA IN A TRUMP PRESIDENCY FROM A REGULATORY STANDPOINT, MIKE, IS TO HAND RESPONSIBILITY BACK TO THE STATE ON A NUMBER OF ISSUES. I’M NOT SAYING THERE’S ANY CERTAINTY OR EVEN REPORTING THAT CRYPTO WOULD BE CALLED INTO THAT BASKET, BUT DO YOU SEE THAT BEING A POINT OF TENSION, A STATE-BY-STATE POLICY TOWARD CRYPTOCURRENCY MARKETS AND CONSUMER ADOPTION VERSUS A SORT OF FEDERAL LEVEL LOOK? >> PARTLY THAT WOULD BE GREAT. I’VE BEEN SAYING WE KIND OF
HAVE A THOMAS JEFFERSON VERSUS ALEXANDER HAMILTON THING GOING ON RIGHT NOW WHEN IT COMES TO CRYPTO. YOU’VE GOT ONE FOR THE FED POWER, HAMILTON’S SIDE. THE OTHER ONE FOR THE STATES’ FEDERATION, JEFFERSON.
HOWEVER, AMERICA, AS A POLITICAL AND ECONOMIC SYSTEM, HAS A LOT OF FEDERAL TIES. SO EVEN IF YOU ARE A STATE-CHARTERED BANK, REMEMBER YOU PROBABLY ARE CARRYING FDIC, WHICH IS THE FEDERAL DEPOSITORY INSURANCE. THE FEDERAL INSURANCE IS VERY DIFFICULT AND HAS DEFINITELY BEEN TOLD TO LOCK OUT CRYPTO. SO WHETHER YOU’RE A FEDERALLY CHARTERED INSTITUTION THROUGH THE O.C.C. OR STATE-CHARTERED ONE, YOU’RE PROBABLY LOOKING AT FDIC AND THE FEDERAL RESERVE, I’M SORRY, THE FDIC HAS TREMENDOUS POWER OVER ALL OF THOSE BANKS. SO ANYWAY, I WOULD LIKE TO SEE MORE COMPETITION ACROSS STATES TO GET THIS GOING. HOWEVER, REMEMBER, THERE’S
FEDERAL FOLKS EVERYWHERE. ED: THANK YOU. YOU’RE LOOKING AT LIVE PICTURES FROM THE WHITE HOUSE. THAT IS THE CHAMPIONSHIP TEAMS OF THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION GATHERING AT THE PODIUM. WE AWAIT VICE PRESIDENT HARRIS, WHO’S DUE TO DELIVER MARKS. VERY QUICKLY GO OUT TO WASHINGTON, D.C., BLOOMBERG’S
KAILEY LEINZ. WE TALKED ABOUT ONE CANDIDATE VERSUS ANOTHER AND WHAT HARRIS MAY OR MAY NOT SAY. >> YEAH, THIS WOULD BE THE FIRST INTRODUCTION TO VICE PRESIDENT KAMALA HARRIS AS NOT JUST THE VICE PRESIDENT, BUT AS A DEMOCRAT SEEKING THE NOMINATION JUST A MATTER OF WEEKS FROM NOW. THIS IS HER FIRST OFFICIAL EVENT SINCE ANNOUNCING SHE DOES INTEND TO WIN AND EARN THAT NOMINATION. THIS IS GOING TO BE VERY HIGH-PROFILE FOR HER, AND I WOULD POINT OUT THIS IS NOT THE ONLY TIME THAT HARRIS WILL BE AT AN EVENT TODAY.
SHE JUST TWEETED OR POSTED ON X THAT IN THIS FIRST FULL DAY OF OUR CAMPAIGN, IN HER WORDS, SHE’LL HEAD TO WILMINGTON, DELAWARE, TO SAY HELLO TO THE STAFF IN HEADQUARTERS. SHE SAYS ONE DAY DOWN, 105 TO GO. SHE SAYS TOGETHER WE’RE GOING TO WIN THIS, AND WE’RE GOING HEAR HER IN JOUST MOMENTS AS SHE WALKS ON THE STAGE AT THE WHITE HOUSE OF THE NCAA SPORTS DAY EVENT. OF COURSE, NOT SOMETHING THAT WAS INTENDED TO BE A CAMPAIGN EVENT, BUT GIVEN THE EVENTS OF THE LAST 24 HOURS, IT’S VERY MUCH BECOMING ONE, AS WE AWAIT THE VICE PRESIDENT TO GIVE REMARKS AFTER THIS FIRST SPEAKER. ALIX: WE DO ANTICIPATE, A LOT TO BE SAID.
WHEN THEY ARE ALREADY SIGNED UP TO MAKE SPEECHES REGARDING SPORT, REGARDING COMPETITION, HOW MUCH DO WE THINK SHE REALLY CAN JAM IN THE FUTURE POLICYMAKING SHE’S ALREADY THINKING AROUND? >> WELL, THIS ISN’T LIKELY TO BE A SPEECH THAT IS GOING TO OUTLINE EVERYTHING SHE WOULD LIKE TO BE POLITICALLY AS PRESIDENT, CAROLINE, BUT OF COURSE, WITH ONLY 105 DAYS UNTIL THE ELECTION, JUST A MATTER OF WEEKS UNTIL THE DEMOCRATIC CONVENTION IN CHICAGO, WHICH BEGINS AUGUST 19, SHE, FRANKLY, CANNOT AFFORD TO MISS ANY OPPORTUNITY TO PLEAD HER CASE AS TO WHY SHE SHOULD BE ELEVATED FROM VICE PRESIDENT OF THE UNITED STATES TO PRESIDENT OF THE UNITED STATES. GIN THIS IS THE FIRST TIME SHE’LL BE ADDRESSING CAMERAS TO ANNOUNCE HER CANDIDACY, TO SAY SHE DOES INTEND TO EARN THE DEMOCRATIC NOMINATION, SHE’S LIKELY NOT GOING TO GO WITHOUT SAYING THAT. BUT, OF COURSE, BECAUSE THE EVENT IS NOT A CAMPAIGN EVENT, THIS IS HAPPENING ON THE WHITE HOUSE LAWN AS WE SPEAK, IT IS LIKELY TO NOT BE AS STEEPED IN POLICY AS IT OTHERWISE COULD HAVE BEEN. MANY STRATEGISTS I’VE SPOKEN WITH IN THE LAST 24 HOURS SUGGEST HARRIS IS PROBABLY BETWEEN NOW AND THE CONVENTION BEGINNING IN MID-AUGUST GOING TO HAVE TO DO SOME KIND OF FORMAL ANNOUNCEMENT OF WHAT HER POLICY PLATFORM WILL BE AND HOW IT CAN BE DIFFERENTIATED FROM JOE BIDEN, KNOWING REPUBLICANS ARE ALREADY TRYING TO TIE HER DIRECTLY TO THE POLICIES OF THIS ADMINISTRATION, GIVEN SHE HAS SERVED THIS ADMINISTRATION AS VICE PRESIDENT FOR THE LAST 3 1/2 YEARS. CAROLINE: IT’S INTERESTING, AS A TECHNOLOGY SHOW, WE’VE OBVIOUSLY BEEN TRYING TO GARNER THE INTEREST FROM SOCIAL MEDIA USERS, AND IT FEELS AS THOUGH THE CHINESE COMMUNITY AND GOVERNMENT DOESN’T SEEM MUCH OF A TONE SHIFT COMING FROM BIDEN PASSING THE BATON TOE KAMALA HARRIS, A VIEW SHE WOULD STILL BE UNLIKELY TO BEAT OUT TRUMP. THAT’S RINGING OUT IN THE CRYPTO MARKET WE WERE JUST SPEAKING ABOUT.
WHAT ABOUT DONORS HERE AT THE MOMENT? I KNOW WE SPOKE ABOUT IT BRIEFLY. HAS THERE BEEN ANY NEW UPDATE ABOUT SUPPORT COMING FROM THE MONETARY PERSPECTIVE? KATIE: EVERY. >> ACT BLUE HAD $50 MILLION RAISED FROM GRASS ROOTS DONORS IN JUST THE SEVEN HOURS AFTER BIDEN’S ANNOUNCEMENT AND HARRIS’ SUBSEQUENT ANNOUNCEMENT THAT SHE WAS SEEKING THE NOMINATION. OUR UNDERSTANDING IS THOSE ARE CONTINUING TO ROLL IN, AND THAT FIGURE IS TICKING HIGHER.
WE ALSO HAVE SEEN A NUMBER OF HIGH-PROFILE DONORS, ONE WELL KNOWN TO THE TECHNOLOGY INDUSTRY, GEORGE SOROS HAS DONE THE SAME. OTHERS ARE STILL REMAINING ON THE SIDELINES FOR NOW, AS MANY ARE NOT EAGER TO SEE WHAT COULD BE AN ANNOUNCEMENT OF HARRIS WITHOUT A FULL PROCESS HERE. BUT THE VICE PRESIDENT IS NOW AT THE PODIUM, LET’S LISTEN TO HER WORDS.
VICE PRESIDENT HARRIS: THESE EXTRAORDINARY STUDENT-ATHLETES, AND IT IS GOOD TO BE HERE WITH SO MANY LEADERS, INCLUDING, OF COURSE, MEMBERS OF CONGRESS, MEMBERS OF OUR ADMINISTRATION, AND OUR EXTRAORDINARY ATHLETES. OUR PRESIDENT, JOE BIDEN, WANTED TO BE HERE TODAY. HE’S FEELING MUCH BETTER AND RECOVERING FAST. HE LOOKS
FORWARD TO GETTING BACK ON THE ROAD. AND I WANTED TOE SAY A FEW WORDS ABOUT OUR PRESIDENT. JOE BIDEN’S LEGACY OF ACCOMPLISHMENT OVER THE PAST THREE YEARS IS UNMATCHED IN MODERN HISTORY. IN ONE TERM, HE HAS ALREADY -- YES, YOU MAY CLAP. [APPLAUSE] IN ONE TERM, HE HAS ALREADY SURPASSED THE LEGACY OF MOST PRESIDENTS WHO HAVE SERVED TWO TERMS IN OFFICE. AND I FIRST CAME TO KNOW PRESIDENT BIDEN THROUGH HIS SON, BEAU. WE WORKED TOGETHER AS ATTORNEYS
GENERAL IN OUR STATES, AND BACK THEN BEAU WOULD OFTEN TELL ME STORIES ABOUT HIS DAD. HE WOULD TALK ABOUT THE KIND OF FATHER AND THE KIND OF MAN THAT JOE BIDEN IS. THE QUALITIES THAT BEAU REVERED IN HIS FATHER ARE THE SAME QUALITIES THAT I HAVE SEEN EVERY DAY IN OUR PRESIDENT. HIS HONESTY, HIS INTEGRITY, HIS COMMITMENT TO HIS FAITH AND HIS FAMILY, HIS BIG HEART, AND HIS LOVE, DEEP LOVE, OF OUR COUNTRY, AND I AM FIRSTHAND WITNESS THAT EVERY DAY OUR PRESIDENT, JOE BIDEN, FIGHTS FOR THE AMERICAN PEOPLE, AND WE ARE DEEPLY, DEEPLY GRATEFUL FOR HIS SERVICE TO OUR NATION. [APPLAUSE] SO WITH THAT, ON BEHALF OF OUR PRESIDENT AND DR. BIDEN, I AM HONORED TO WELCOME ALL OF YOU
TO THE WHITE HOUSE TO CELEBRATE THE ACHIEVEMENTS OF THESE GREAT ATHLETES. EVERY ONE OF THEM IS A NATIONAL CHAMPION. A NATIONAL CHAMPION. IN AMERICA, TENS OF MILLIONS OF PEOPLE PLAY A SPORT AS A CHILD, AND THE BEST OF THE BEST GROW UP TO BECOME NATIONAL CHAMPIONS. HERE TODAY, WE HAVE SEVEN UNDEFEATED TEAMS, 1 1 REPEAT CHAMPIONS, AND 20 FIRST-TIME WINNERS. [APPLAUSE] SOME OF YOU HAVE REPRESENTED
OUR NATION ON THE INTERNATIONAL STAGE. ED: THAT WAS VICE PRESIDENT KAMALA HARRIS SPEAKING PUBLICLY FOR THE FIRST TIME SINCE PRESIDENT BIDEN ENDED HIS RE-ELECTION BID AND ENDORSED VICE PRESIDENT HARRIS TO BE THE DEMOCRATIC NOMINEE. LET’S GO BACK TO KAILEY LEINZ IN WASHINGTON, D.C. I WAS LISTENING INTENTLY TO
WHAT VICE PRESIDENT HARRIS WAS SAYING. I THINK A LOT OF IT WAS NOTED ALREADY IN THE STATEMENT SHE PUT OUT SUNDAY. YOUR ANALYSIS, KAILEY. KAILEY: INTERESTING THAT SHE CHOSE NOT TO SPEAK ABOUT HER OWN QUALIFICATIONS TO BE PRESIDENT OF THE UNITED STATES NOW THAT SHE HAS DECLARED SHE DOES INTEND TO EARN THE DEMOCRATIC NOMINATION, BUT INSTEAD TO BEGIN HER REMARKS IN HER FIRST OFFICIAL SEVENTH SINCE ALL OF THIS WENT DOWN TO TALK ABOUT JOE BIDEN’S LEGACY, DESCRIBING HIM AS HAVING IN ONE TERM, SAYING THE AUDIENCE COULD CLAP FOR THIS, HE’S ALREADY SURPASSED THE LEGACY OF MOST PRESIDENTS WHO SERVED TWO TERMS IN OFFICE, TALKING ABOUT HONESTY AND INTEGRITY AND FAITH, DEEPLY GRATEFUL FOR HIS SERVICE TO OUR NATION. SO SHE’S NOT NECESSARILY MAKING THIS ABOUT HER TODAY. SHE’S TALKING ABOUT JOE BIDEN AND THE LEGACY HE WILL LEAVE BEHIND, KNOWING THAT HE IS GOING TO BE A ONE-TERM PRESIDENT IN HIS DECISION NOT TO SEEK RE-ELECTION. AND EVEN AS HE HAS SUGGESTED HE WOULD LIKE TO SEE THE BATON, OR THE TORCH PASSED TO HER, SHE DIDN’T TAKE THIS MOMENT AT LEAST INITIALLY TO PLEAD HER OWN CASE AND TREAT THIS LIKE A CAMPAIGN EVENT. SHE MOVED RIGHT FROM TALKING
ABOUT JOE BIDEN’S LEGACY TO COMMENDING THE ATHLETES WHO ARE GATHERED ON THE STAGE BEHIND HER. IT’S AN INTERESTING CHOICE, AND IT DOES SUGGEST PERHAPS SHE’S GOING TO SAVE MOST OF THE CAMPAIGNING FOR A LATER EVENT. SHE JUST ANNOUNCED A FEW MINUTES AGO THAT SHE WILL BE HEADING TO WILMINGTON, DELAWARE, LATER TODAY TO MEET WITH THE CAMPAIGN HEADQUARTERS THERE AS SHE KNOWS THERE’S JUST 105 DAYS TO GO UNTIL THE ELECTION. CAROLINE: WHEN PRESIDENT BIDEN IS FULLY RECOVERED, ABLE TO BE BACK IN FRONT OF CAMERAS, WHAT DO WE EXPECT THE RELATIONSHIP TO BECOME LIKE OVER THE NEXT FEW DAYS? KAILEY: HE ANNOUNCED HE WOULDN’T SEEK RE-ELECTION YESTERDAY, THINKS IT’S IN THE BEST INTEREST OF THE PART AND NATION TO FOCUS ON CONTINUING OUT THE REST OF HIS TERM AND DUTIES AS PRESIDENT. TO ME THAT DOES SUGGEST HE MAY NOT BE SUPER ACTIVE IN THE ACTUAL ONGOING PRESIDENTIAL CAMPAIGN, BUT ULTIMATELY THAT’S LIKELY A DECISION THAT WOULD BE LEFT TO KAMALA HARRIS OR WHOEVER IS ATOP THE DEMOCRATIC TICKET, TO WHAT EXTENT THEY WANT TO ATTACH THEMSELVES TO JOE BIDEN AND HAVE JOE BIDEN CAMPAIGNING ON THEIR BEHALF. KNOWING THAT THERE WILL BE A REPUBLICAN EFFORT TO TALK KAMALA HARRIS DIRECTLY TO THE POLICIES OF THE BIDEN ADMINISTRATION SUGGESTS THAT SHE’S ESSENTIALLY JUST A CONTINUATION OF THE SAME.
YOU COULD SEE HOW SHE MAY WANT TO SENTENCE HERSELF FROM THAT. IT REMAINS TO BE SEEN. JOE BIDEN JUST DAYS AGO, AS WE ALL KNOW, WAS TALKING ABOUT RETURNING TO THE CAMPAIGN TRAIL WHEN HE RECOVERS FROM COVID THIS WEEK. WE KNOW THINGS ARE EVOLVING IN REAL TIME. AND IT LOOKS LIKE THE VICE PRESIDENT HAS JUST WRAPPED UP HER REMARKS WITHOUT SAYING MUCH ABOUT HER CANDIDACY WHATSOEVER. CAROLINE: MAYBE LATER IN WILMINGTON.
KAILEY LEINZ, WE THANK YOU SO MUCH. COMING UP, WE GET BACK TO TECH AND WHAT TO EXPECT FROM THIS WEEK’S EARNINGS. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: LET’S LOOK AHEAD TO THIS WEEK’S TECH EARNINGS, WHAT TO EXPECT. STARTING WITH S.A.P. SPOTIFY, GOOGLE, TESLA REPORTING TOMORROW.
WE’RE GOING TO GO THROUGH WHETHER WE CAN LIVE UP TO SOME EVALUATIONS, RON. RON: THAT’S THE KEY QUESTION THIS QUARTER. A LOT OF SEVEN COMPANIES ARE EXPECTED TO DELIVER A DECELERATION? EARNINGS. EARNINGS WILL STILL BE PRETTY STRONG. GROWTH WILL STILL BE PRETTY STRONG, BUT SLOWER THAN WE’VE SEEN IN PAST QUARTERS, AND GIVEN HOW MUCH THESE STOCKS ARE BROUGHT UP TO FAR THIS YEAR, EVEN WITH THE RECENT VOLATILITY WE’VE SEEN, THAT’S THE KEY QUESTION.
HOW MUCH ARE THESE COMPANIES ABLE TO JUSTIFY HOW MUCH THEY’VE MOVED UP THIS YEAR? ED: TUESDAY IS GOING TO BE BIG. IS THERE A STORY ACROSS ALL OF TECH YOU’RE WATCHING? >> I THINK THE MAIN ISSUES ARE GOING TO BE HOW MUCH OF THESE EXPECTS WILL CONTINUE SPENDING ON THEIR A.I. INITIATIVES AND WHAT KIND OF RETURN ON INVESTMENT ARE THEY SEEING FROM THESE INITIATIVES. I THINK ALPHABET IS GOING TO BE PARTICULARLY IMPORTANT WITH THAT. WE’RE GOING TO WATCH HOW STRONG THE CLOUD BUSINESS IS THERE, AND MORE BROADLY, WE’RE GOING TO SEE WHAT THE STATE OF THE DIGITAL ADVERTISING MARKET LOOKS LIKE. WE ALREADY SAW SOME OF THAT LAST WEEK FROM NETFLIX, BUT I THINK FOR ALPHABET AND META NEXT WEEK, THOSE ARE THE KEY FOCUSES. HOW MUCH ARE THEY SEEING FROM
A.I.? HOW MUCH ARE THEY SPENDING ON IT? WILL THAT BE ENOUGH TO JUSTIFY STOCKS? CAROLINE: IN PARTICULAR, NVIDIA. WE APPRECIATE IT. THAT DOES IT FOR THIS EDITION OF "BLOOMBERG TECHNOLOGY." A LOT OF EARNINGS TO ANTICIPATE THERE. ED: YOU START THE WEEK WITH THE BIGGEST OUTAGE IN HISTORY MAKES FOR GOOD RECAPPING ON PODCAST.
YOU KNOW WHERE TO FIND IT. CAROLINE IS IN LONDON THIS WEEK. I’M IN SAN FRANCISCO. IT’S AN AMAZING WEEK TO TUNE IN, LEARN ABOUT WHAT’S GOING ON IN THE WORLD OF TECHNOLOGY. THIS IS "BLOOMBERG TECHNOLOGY." ♪
2024-07-24 02:28
